In the space where kitchenware retailer Lakeland used to be, a hoarding in Newcastle’s Eldon Square shopping centre promises the arrival of something “lovely and quirky”. This is Søstrene Grene, a Danish homeware chain that earlier in July hit the milestone of 300 stores across 14 European countries.
A couple of doors down, Chinese variety retailer Miniso is coming soon (on 2 August, in fact).
And in St Andrew’s Way, French beauty behemoth Sephora is getting ready for an autumn opening in a mall that already accommodates US brand Hollister and Spanish fashion giant Mango.
Global retail brands entering the UK market is nothing new – after all, as I have noted previously, even Woolworths was an American company when it first traded on British shores in 1909. However, for every IKEA (Swedish), Zara (Spanish) or TK Maxx (USA) success story, UK retail history is littered with international chains – from Clas Ohlson to Carrefour – that have tried and failed to make a go of it here.
Experience tells us that new international entrants need a brand and offer that resonates with British consumers, and enough critical mass for the supply chain and marketing costs to stack up, but not so many stores that the business ends up acquiring dubious – or overly expensive – locations in the pursuit of rapid growth.
Take Aussie novelty stationer Smiggle, for instance. It entered the UK in 2014, overexpanded to more than 130 stores by 2019, but is now doing much better post-pandemic with an edited estate of 107 shops, including Metrocentre, Sunderland and Middlesbrough. Its sister brand, sleepwear chain Peter Alexander, is planning its first UK shops before Christmas.
Back to the present, though, and what do we know about the global brands expanding in the North East right now?
Søstrene Grene
Søstrene Grene – pronounced “sos-tren green” in the UK market, but something a little more complicated in its native Denmark – trades online too, but you really need to visit one of its physical stores to get the full wow factor.
Adopting the fixed-path layout beloved of Scandi compatriot IKEA, Søstrene Grene is a dizzying blend of everything from furniture and partyware to toiletries and yarn, overloading the senses with some of the most beautiful merchandising you’ve ever seen.
Joint venture partner Jonathan Cooper, who is leading Søstrene Grene’s expansion in the North, told me: “We’ve been looking at Newcastle for some time and when this store came up that fitted our requirements we acted as quickly as possible to secure it. I still love to see the customers’ reaction when they step in for the first time. When they see the Danish notion of ‘hygge’ in our store they are generally blown away.”
Having launched in Britain with a shop in Nottingham eight years ago, Søstrene Grene’s Newcastle store is due to open on 30 August. With more than 30 UK branches now, and a target of 100 by 2030, it’s easy to imagine that other North East locations – such as Metrocentre, Durham or Sunderland – will be on the radar.
Miniso
Two doors away, Newcastle’s 1,700 sq ft Miniso will be the chain’s 29th British store – having launched over here in 2019 – though globally it trades from over 6,000 outlets in more than 100 territories.
A flagship store opening on London’s Oxford Street last year marked it out as a retailer to watch.
Miniso’s product categories, among them home accessories, toys and beauty, are actually not dissimilar to Søstrene Grene, though the instore vibe could hardly be more different.
Many North East shoppers will already be familiar with the Metrocentre Miniso, opened two years ago, but, for the uninitiated, imagine acres of pink, a tonne of kitsch, and brand tie-ups with the likes of Disney, Minions and Barbie.
Miniso will need to avoid a Smiggle-style overreach as it expands further across Europe. However, with a relatively cautious approach to date, and a format that has proven adaptable to different locations – UK stores currently range between 430 and 2,700 sq ft – the chain’s North East presence could well grow further.
Sephora
Meanwhile, bagging Sephora – not just for Newcastle, but for Metrocentre too – is perhaps the biggest coup of all, as I argued in my previous blog post here.
Part of luxury group LVMH, whose other brands include Louis Vuitton, Dior and many others, Sephora trades from 2,700 stores across 35 countries, though its UK journey has not been all plain sailing.
The brand opened and closed nine British stores between 2000 and 2005, having failed to dent established competition like Boots and Superdrug.
Two decades on, however, the landscape has changed to an extent that Sephora is ripe for a comeback. Not only has its own beauty offering become more premium and exclusive, but the demise of Debenhams and other department stores has left a gap for someone offering a glamorous instore experience with engaging customer service.
With only three other UK stores to date – at the two Westfield schemes in London, and the Trafford Centre near Manchester – the North East securing the fourth and fifth really is a big deal.
Welcome
As I often argue, it’s no bad thing that our high streets are becoming a bit less reliant on big-name brands, and a bit more distinctive, independent and local.
However, when interesting global retailers are expanding, it would be foolhardy not to encourage them to trade in our region, and to make them welcome when they do.
When it comes to retail traffic, the North East’s light is definitely on Grene.
